The global licorice extract market size is expected to be valued at US$ 532.5 million in 2026 and projected to reach US$ 823.7 million, growing at a CAGR of 6.4% between 2026 and 2033.

The licorice extract market is witnessing steady growth driven by rising demand for natural ingredients across pharmaceuticals, nutraceuticals, food & beverages, and cosmetics. Derived mainly from Glycyrrhiza glabra, licorice extract is valued for its anti-inflammatory, antimicrobial, and sweetening properties, making it a preferred alternative to synthetic additives.

Rise in consumer preference for clean-label and plant-based products is accelerating adoption in functional foods, herbal supplements, and skincare formulations. Expansion of traditional medicine systems such as Ayurveda and Traditional Chinese Medicine further supports demand, particularly in Asia-Pacific. Additionally, ongoing product innovations in standardized extracts and rising use in respiratory and digestive health applications are strengthening market expansion globally.

Drivers - Expanding Pharmaceutical Applications of Glycyrrhizin and Licorice-Derived Bioactives

The pharmaceutical sector's deepening engagement with licorice-derived compounds is generating structurally durable demand that industry stakeholders cannot afford to underestimate. Glycyrrhizin the primary bioactive triterpenoid saponin in licorice root has demonstrated clinically validated efficacy in hepatoprotective, anti-inflammatory, antiviral, and immunomodulatory applications, with research published in Phytomedicine and the European Journal of Pharmacology documenting its therapeutic utility in chronic liver disease management.

The World Health Organization (WHO) includes licorice root preparations in its monographs for herbal medicines used in respiratory and gastrointestinal conditions, lending regulatory legitimacy that accelerates formulary adoption. Growing incidence of chronic liver conditions with the Global Burden of Disease Study reporting over 1.5 billion people affected by non-alcoholic fatty liver disease globally creates a sustained addressable market for glycyrrhizin-based pharmaceutical preparations, directly stimulating demand for high-purity licorice extract from manufacturers such as Maruzen Pharmaceuticals Co., Ltd. and Norevo GmbH.

Rising Demand for Natural Flavoring Agents in Food and Beverage Industry

Consumer preference for clean-label, naturally derived flavoring ingredients is reshaping procurement strategies across the global food and beverage industry, and licorice extract is among the primary beneficiaries of this structural shift. The International Food Information Council (IFIC) Foundation's annual consumer surveys consistently indicate that over 60% of global consumers actively seek products with recognizable, natural-origin ingredients a behavioral trend that has accelerated post-COVID-19 as health consciousness intensified.

Licorice extract functions as a flavor enhancer and sweetness modifier at low concentrations, making it a cost-efficient alternative to synthetic flavoring agents in confectionery, beverages, and bakery applications. The European Food Safety Authority (EFSA) and the U.S. Food and Drug Administration (FDA) have established Generally Recognized as Safe (GRAS) and approved usage guidelines for licorice derivatives, reducing regulatory friction for food manufacturers reformulating toward natural ingredient platforms a dynamic that directly benefits extract suppliers positioned across powder, paste, and block form factors.

Restraints - Regulatory Restrictions on Glycyrrhizin Consumption and Labeling Requirements

Regulatory frameworks governing glycyrrhizin intake present a meaningful commercial constraint for licorice extract manufacturers and their downstream customers. The European Food Safety Authority (EFSA) established an acceptable daily intake (ADI) of 0.015 mg/kg body weight per day for glycyrrhizic acid, and EU Directive 2004/112/EC mandates specific labeling warnings on confectionery and beverages containing licorice above defined concentration thresholds.

These restrictions create formulation complexity for food manufacturers particularly in dietary supplements and functional beverages limiting permissible usage levels and imposing compliance costs that suppress demand growth in consumption-sensitive applications. For new entrants in the extract manufacturing space, navigating divergent national regulatory frameworks across the EU, U.S., and Asia Pacific markets adds operational overhead that constrains market expansion velocity.

Supply Chain Vulnerability and Raw Material Sourcing Concentration

The licorice extract market carries inherent supply-side fragility due to the geographic concentration of raw material cultivation in a narrow band of producing regions spanning Iran, China, Afghanistan, and Turkey countries collectively accounting for the majority of global licorice root production. The Food and Agriculture Organization of the United Nations (FAO) has flagged both over-harvesting of wild licorice root populations and climate-driven yield variability as growing agricultural sustainability concerns that threaten long-term supply reliability.

Geopolitical disruptions, particularly sanctions-related trade restrictions affecting Iranian licorice exports have periodically caused sharp input cost inflation and delivery delays for extract processors in Europe and North America. This sourcing concentration exposes processors and their customers to price volatility that compresses margins and complicates long-term contract pricing, particularly for mid-tier extract manufacturers without diversified procurement networks.

Opportunities - Accelerating Demand for Licorice Extract in Cosmetics and Personal Care Formulations

The cosmetics and personal care industry's pivot toward bioactive botanical ingredients creates a high-growth window for licorice extract suppliers capable of delivering cosmetic-grade, standardized preparations. Glabridin a key isoflavonoid in licorice root extract has been clinically demonstrated to inhibit tyrosinase activity and reduce UV-induced hyperpigmentation, making it one of the most scientifically validated natural skin-brightening agents available to cosmetic formulators.

The Personal Care Products Council (PCPC) and Cosmetics Europe have both noted accelerating industry investment in plant-derived actives as a response to consumer rejection of synthetic hydroquinone-based brightening agents in multiple major markets. South Korea's influential K-beauty industry valued at approximately USD 13 billion per Korea Customs Service export data has emerged as a primary driver of glabridin adoption globally, with licorice root extract now appearing in premium skincare formulations from brands distributed across Asia, Europe, and North America. Suppliers, including Maruzen Pharmaceuticals and Shaanxi Fujie Pharmaceutical Co., Ltd. are investing in cosmetic-grade extract standardization to capture this demand.

Organic Licorice Extract as a Premium Growth Segment Driven by Natural Health Trends

The organic licorice extract segment represents a structurally distinct and faster-growing revenue tier within the broader market, driven by premium pricing dynamics and the intersection of clean-label food trends with the growing global dietary supplements industry. Organic certified licorice extract commands price premiums of 20–35% over conventional equivalents a spread that sustains attractive margins for manufacturers who have successfully achieved USDA Organic or EU Organic certification.

The Organic Trade Association (OTA) reported U.S. organic food and supplement sales exceeding USD 67.6 billion in 2023, with botanical supplement ingredients among the fastest-growing sub-categories a macro tailwind that directly elevates demand for certified organic licorice extract across dietary supplement and functional food applications. Companies including Bio-Botanica Inc. and Aushadhi Herbal are well-positioned to capitalize on this opportunity by expanding organic-certified extraction capacity and investing in verified supply chain traceability that enables premium positioning in North American and European clean-label markets.

Form Insights

Powder is the leading form segment in the global licorice extract market, commanding approximately 32% of total market share in 2025, a position sustained by its superior functional versatility, ease of handling, and compatibility with the widest range of end-use applications across food and beverage, pharmaceutical, and cosmetic manufacturing. Powdered licorice extract offers precise dosage control, extended shelf stability, and straightforward incorporation into dry-blended formulations attributes that align with the technical requirements of the pharmaceutical and dietary supplement industries, which are the highest-value end-user segments.

The United States Pharmacopeia (USP) and European Pharmacopoeia (Ph. Eur.) both include monographs for licorice extract in standardized powder form, providing regulatory reference standards that facilitate its adoption in regulated pharmaceutical applications globally. Granules represent the fastest-growing form segment, driven by rising demand for convenient, directly compressible supplement formats and the expansion of nutraceutical applications requiring controlled-release delivery mechanisms.

Nature Analysis

Conventional licorice extract commands approximately 72% of the global market by nature segment in 2025, a dominance rooted in the well-established cultivation and processing infrastructure for non-certified licorice root across primary producing regions including Iran, China, and Turkey, which collectively supply the majority of globally traded licorice root. Conventional extract's cost advantage attributable to the absence of organic certification compliance costs and the availability of large-volume, competitively priced raw material from established producing regions makes it the preferred input for price-sensitive pharmaceutical active ingredient manufacturers and commodity food flavoring applications.

The FAO's agricultural production data confirms conventional cultivation accounts for the overwhelming majority of global licorice root output, sustaining the feedstock economics that underpin this segment's leadership. Organic licorice extract is the fastest-growing nature segment, expanding at a projected CAGR of approximately 8.9% through 2033, as premium dietary supplement and cosmetic formulators increasingly require certified organic sourcing to satisfy clean-label and natural positioning commitments.

End-user Insights

Food & beverage is the leading end-user segment in the global licorice extract market, accounting for approximately 38% of total market revenue in 2026, sustained by the ingredient's dual functionality as a natural flavoring agent and a sweetness enhancer in confectionery, beverages, tobacco flavoring, and bakery applications. Licorice extract's high natural sweetness intensity with glycyrrhizin estimated at 50 times the sweetness of sucrose per unit weight, as documented in food chemistry literature makes it an economically attractive ingredient for manufacturers reformulating toward reduced-sugar or natural-sweetener platforms.

The EU's Farm to Fork Strategy under the European Green Deal, which targets a significant reduction in synthetic food additives, is accelerating reformulation toward natural botanical alternatives in European food manufacturing a regulatory tailwind that disproportionately benefits well-documented, EFSA-approved natural flavoring agents such as licorice extract. Pharmaceuticals is the fastest-growing end-user segment, driven by expanding clinical applications of glycyrrhizin-based active pharmaceutical ingredients (APIs) in hepatology, virology, and respiratory medicine.

North America Licorice Extract Market Trends and Insights

North America leads the global licorice extract market with approximately 37% of total market share in 2025, driven by robust demand across the pharmaceutical, dietary supplement, and natural food flavoring sectors. The region benefits from strong regulatory clarity under FDA GRAS frameworks, a highly developed nutraceutical industry, and growing consumer preference for natural botanical ingredients in food and wellness products. Rising investments in herbal supplement R&D by North American manufacturers are expected to sustain the region's leadership.

U.S. Licorice Extract Market Size

The United States accounts for approximately 82% of North American licorice extract revenue, anchored by the world's largest dietary supplement industry valued at over USD 60 billion per the Council for Responsible Nutrition (CRN) which drives consistent demand for standardized botanical extracts including licorice root preparations. The FDA's established GRAS status for licorice derivatives provides manufacturers with regulatory certainty that accelerates product development. The U.S. market is projected to maintain above-regional-average growth through 2030 as functional food and pharmaceutical API demand expands.

Europe Licorice Extract Market Trends and Insights

Europe is the second-largest regional market for licorice extract, holding approximately 26% of global revenue in 2026, with demand concentrated in pharmaceutical and confectionery applications across Germany, France, the U.K., and the Netherlands. The European Pharmacopoeia (Ph. Eur.) standardization of licorice root extract provides a strong institutional framework for pharmaceutical adoption. The EU Farm to Fork Strategy's push toward natural food additives is generating new demand from food manufacturers reformulating away from synthetic flavoring compounds through 2033.

Germany Licorice Extract Market Size

Germany accounts for approximately 24% of European licorice extract revenue, driven by its position as Europe's largest pharmaceutical manufacturer and a major consumer of herbal active ingredients under the Commission E Monographs of the German Federal Institute for Drugs and Medical Devices (BfArM). Germany's well-developed herbal medicine tradition supported by the ESCOP and WHO monographs sustains consistent demand for standardized licorice extract in licensed herbal medicinal products. Above-average pharmaceutical R&D investment positions Germany for continued leadership through 2033.

U.K. Licorice Extract Market Size

The United Kingdom represents approximately 16% of European licorice extract market revenue, supported by strong confectionery sector demand the U.K. is one of Europe's largest per-capita consumers of licorice-flavored confectionery and a growing natural health products market regulated by the Medicines and Healthcare products Regulatory Agency (MHRA). Post-Brexit regulatory divergence from EU labeling frameworks has created some compliance complexity for manufacturers, but domestic demand fundamentals remain intact with the natural ingredients trend driving reformulation activity through 2030.

France Licorice Extract Market Size

France contributes approximately 13% of European licorice extract market revenue, with demand anchored in the food and beverage and cosmetics sectors both of which benefit from France's position as a global leader in premium food production and luxury personal care formulation. EFSA-compliant food-grade licorice extract usage in French confectionery and pastry traditions provides stable baseline demand, while the growing French organic cosmetics sector supported by ECOCERT certification infrastructure is driving incremental demand for organic-grade licorice extract in skin-brightening formulations through 2033.

Asia Pacific Licorice Extract Market Trends and Insights

Asia Pacific is the fastest-growing regional market for licorice extract, projected to expand at a CAGR of approximately 8.2% driven by the convergence of traditional medicine demand, expanding pharmaceutical manufacturing, and a rapidly growing cosmetics industry. China dominates the regional landscape both as the world's largest producer of licorice root and as a major consumer of glycyrrhizin-based pharmaceutical preparations in Traditional Chinese Medicine (TCM) applications, with the State Administration of Traditional Chinese Medicine (SATCM) actively supporting TCM ingredient commercialization. Rising middle-class health awareness across India, Japan, and Southeast Asia is accelerating botanical supplement adoption.

India Licorice Extract Market Size

India accounts for approximately 14% of Asia Pacific licorice extract revenue, supported by the country's deep Ayurvedic tradition where licorice root (Yashtimadhu) is a foundational medicinal herb and a rapidly expanding dietary supplement and herbal pharmaceutical sector. The Ministry of AYUSH's initiatives to standardize and commercialize traditional herbal formulations have accelerated demand for certified licorice extract among domestic Ayurvedic product manufacturers. India-based suppliers, including VPL Chemicals Pvt. Ltd., AOS Products Pvt. Ltd., and Botanic Healthcare Pvt. Ltd. are scaling extraction capacity to serve both domestic and export markets.

The global licorice extract market is moderately consolidated, with competition centered on product quality, extraction technology, regulatory compliance, and supply chain integration. Leading manufacturers focus on expanding their portfolios of powdered, paste, and liquid licorice extracts to cater to food, beverage, pharmaceutical, and nutraceutical applications. Companies are investing in sustainable sourcing of licorice roots, advanced extraction processes, and clean-label product development to strengthen market positioning. Strategic partnerships, capacity expansions, and geographic diversification remain key growth strategies.

Key Developments:

• In April 2025, Lakrids by Bülow marked International Liquorice Day with an ambitious bid to set a world record for the largest global liquorice tasting session.
• In November 2024, Danish confectionery brand LAKRIDS BY BÜLOW unveils a whimsical WINTER collection for the 2024 festive season, showcasing its range of gourmet chocolate-coated liquorice.